Arvind Mills Board approves Preferential Allotment of Warrants to Promoters

Arvind Mills Ltd has announced that pursuant to the provisions of Section 81(1A) and all other applicable provisions of the Companies Act, 1956 (including any statutory modification(s) or reenactment thereof, for the time being in force) and pursuant to the provision of Chapter XIII of the Securities & Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000 (SEBI [DIP] Guidelines), the Board of Directors of the Company has approved in their meeting held on September 28, 2007, the issue of 5,06,00,000 Warrants entitling the holders of warrant to apply for and obtain allotment of one equity share against one warrant amount to not to exceed Rs 263.12 crores on preferential basis to the promoters / promoter group, subject to the shareholders approval.

The Board has also approved the calling of an Extra Ordinary General Meeting for the approval of the preferential allotment on October 23, 2007.

The relevant date for the purpose of determining the price for the preferential issue of the equity shares and warrants would be 30 days prior to the date of the Extra Ordinary General Meeting to be held on October 23, 2007, under Chapter XIII of the Securities & Exchange Board of India (Disclosure and Investor Portion) Guidelines 2000 (SEBI [DIP] Guidelines).

At the end of period of eighteen (18) months when all the warrants would be converted to equity shares the promoter group holding in the Company would increase to 46.77% from the current level of 33.90%.

Commenting on the issue Mr. Sanjay Lalbhai, chairman & the Managing Director of the Company said "The Company is looking forward to expand its retail and brands business and at the same while trying to manage the challange in its core fabrics and garments business against the backdrop of rising rupee. There is requirement of funds for the growth of the business as well as a need to augment the net worth. the promoters have faith in the earn at Arvind to manage the challange as well as deliver growth, and are committed to the Company".

Source : Equity Bulls

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